To Pool or Not to Pool: The Quality Bank Case |
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| Authors: | Badi H Baltagi |
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| Institution: | Department of Economics , University of Houston , TX , 77004 , USA |
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| Abstract: | Drawing on a recent hearing before the Federal Energy Regulatory Commission, this article illustrates how two statisticians on opposing sides, using two different approaches to the problem, arrived at the same estimator. The differences between the two approaches are highlighted and a proof for the equivalence of the two estimators is given. |
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| Keywords: | Seemingly unrelated regressions Chow test Bartlett test Wald test Heteroscedasticity Dummy variables |
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